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President Biden on Monday invoked the Defense Production Act to accelerate domestic production of clean energy technologies, including solar panel parts, in an effort to "spur domestic manufacturing," senior administration officials said.
The president has been pushing Congress to pass clean energy investments and tax cuts in line with his clean energy and climate agenda, but on Monday is set to unilaterally "create a bridge" to an "American-made clean energy future."
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On Monday, Biden authorized the Department of Energy to use the Defense Production Act to rapidly expand American manufacturing in solar panel parts like photovoltaic modules and module components; building insulation; heat pumps, which heat and cool buildings super efficiently; equipment for making and using clean electricity-generated fuels, including electrolyzers, fuel cells, and related platinum group metals; and critical power grid infrastructure like transformers.
President Joe Biden speaks at the White House, March 15, 2021. (AP Photo/Patrick Semansky / AP Images)
"These actions are going to spur domestic manufacturing," a senior administration official said. "It’s going to put wind in the sails of construction projects all around the country that are employing folks who are making a good wage, and it's going to do all of that while cutting costs for our families and tackling both climate change and environmental injustice."
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The Defense Production Act was first enacted in 1950 as a response to the Korean War and has since been re-invoked more than 50 times since. The act also addresses voluntary agreements – or what the government says is "an association of private interests, approved by the government to plan and coordinate actions in support of the national defense." The provision permits business competitors to work together to plan and coordinate measures to increase the supply of materials.
The official added that with a "stronger" clean energy arsenal, the U.S. can be a stronger partner to allies around the globe – specifically amid Russia’s war in Ukraine.
Energy Secretary Jennifer Granholm testifies before a Senate committee, May 5, 2022, in Washington. (Nicholas Kamm/AFP via Getty Images / Getty Images)
"The stakes are high, and the president is taking action, and he's taking action just as he calls on Congress to quickly pass tax cuts and additional investments that will further advance U.S. clean energy, manufacturing and deployment," the official said. "This is a great way to help our consumers. It's a great way to strengthen our economy."
The president on Monday also directed the development of two tools to accelerate American-made clean energy: master supply agreements, which are expected to increase the speed and efficiency providers can sell their products to the government, and "super preferences," which will apply domestic content standards for federal procurement of solar systems.
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Officials said the Biden administration will also partner with state and local governments to increase the potential market impact over the next decade.
Officials said the United States is currently on track to triple domestic solar manufacturing capacity by 2024.